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tekilochka [14]
3 years ago
7

Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $

24,000 $ 19,000 Direct labor 12,000 28,000 The company's overhead costs of $58,000 are allocated based on direct labor cost. Assume 8,000 units of product A and 9,000 units of Product B are produced. What is the cost per unit for product B
Business
1 answer:
den301095 [7]3 years ago
8 0

Answer:

Cost per unit of Product B is $9.7295

Explanation:

To calculate the cost per unit of a product, we need to convert all the total costs into per unit costs. We also need to find out the Overhead Absorption Rate (OAR) for company's overheads and distribute them among products based on the direct labor costs used by each unit of a product.

Total direct labor cost = 12000 + 28000 = 40000

OAR- Factory Overheads = $58000 / $40000 = $1.45 per $1 of direct labor cost

<u>For Product B</u>

Direct material cost per unit = $19000 / 9000 units = 2.11 per unit

Direct labor cost per unit = $28000 / 9000 units =3.11 per unit

Overhead cost per unit = 1.45 * 3.11 =  4.5095 per unit

$1.45 of overhead is applied to a product for every $1 of direct labor cost incurred.

Total cost per unit of Product B = 2.11 + 3.11 + 4.4095  =  $9.7295

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The Market Outlet has a beta of 1.38 and a cost of equity of 14.945 percent. The risk-free rate of return is 4.25 percent. What
evablogger [386]

Answer:

The discount rate assign to a new project with a Beta of 1.25 is 13.94%

Explanation:

The applicable formula is the Capital Asset Pricing Model formula of Miller and Modgliani  quoted below:

Ke = Rf + (Market risk premium x Beta)

Currently Ke=14.945%

Beta =1.38

Risk free rate of return (Rf) is 4.25%

Market risk premium is the unknown

14.945%=4.25%+(Market Risk Premium)*1.38

14.945%-4.25%=Market Risk Premium*1.38

10.70% =Market Risk Premium*1.38

10.70%/1.38=Market Risk Premium

Market Risk Premium =7.75%

However, the new project cost of equity has to be determined due to having a different Beta factor of 1.25(a different risk appetite)

Using the above formula, we have

Ke=4.25%+(7.75% *1.25)

Ke =13.94%

7 0
3 years ago
Angie owns numerous strip malls. A major tenant of one of the strip malls wanted to cancel its lease because it was moving to an
Vlad [161]

Answer:

1. To determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.

2. Ordinary income of $60,000

Explanation:

1. Based on the information given the factors that she should consider in order to determine the amount as well as the character of her income from these circumstances is to determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.

b. Based on the information given we were told that the tenant paid her the amount of $60,000 in order to cancel its obligations under the lease which means that the amount and character of her income from the cancelled lease will be ORDINARY INCOME of the amount of $60,000 which we were told the tenant paid her in order to cancel its obligations under the lease.

7 0
3 years ago
Bottle Breacher was a successful company that began with crowdfunding through the television show Shark Tank. This is an example
Natalija [7]

Considering the situation described above, this is an example of the "Reward-based" model of crowdfunding.

This is because a reward-based crowdfunding model is a type of crowdfunding that gives the donor something of value in return.

These rewards may be in the form of commodities, services, discounts, or adverts, etc.

There are various types of crowdfunding models. The most common types are the following:

  • Equity-based model;
  • Donation or social-based model;
  • Lending model;
  • Reward-based model.

Hence, in this case, it is concluded that the correct answer is the "Reward-based model" of crowdfunding.

Learn more here: brainly.com/question/21940014

8 0
3 years ago
Eneral Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company'
ololo11 [35]

Answer: The correct answer is "e. Export strategy".

Explanation: and. Export strategy is the global corporate strategy that best describes General products inc. because In spite of being in the United States and that the majority of its income comes from there, it does not stop focusing the business in Canada, because 10% of the income comes from exports to Canada.

4 0
4 years ago
The number of shares of a class of stock that are outstanding is: Multiple Choice the number of shares authorized minus the numb
RoseWind [281]

Answer:

The number of shares of a class of stock that are outstanding is:

the number of shares issued minus the number of shares held as treasury stock.

Explanation:

A company's outstanding shares include the total shares issued minus the treasury stock shares.  Treasury stock shares are shares that the company has repurchased from their former stockholders.  They can be held for resale, to pay for stock options to employees, or they are retired completely.  The number of outstanding shares is an ingredient used in computing the earnings per share (EPS), an important financial metric for investors.

5 0
3 years ago
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